Validation Error: "Gross remuneration linked to IRP5 not equal to total taxable income"

You are generating the IRP5 files for either the Annual or Interim SARS Submission and instead of creating the IRP5 files the system informs you there is mandatory information outstanding. A report will then print with a list of errors and this error is in the report.

The error message is per employee and indicates the value calculated based on IRP5 codes, and values based on taxability. The error is as a result of the value calculated to be taxable based on "when taxable" and gross taxable remuneration based on the IRP5 codes are not the same and needs to be reviewed

• Calculate the difference value

Calculate the difference between the values mentioned on the report, as this will indicate what possible value you need to look for in the payroll. Look on all payroll screens of the specific employee affected as per the report, for the value (ED screen, DD screen, XD screen, OD screen) on the YTD+ (or YTD) column. Subject to if this is a combination of different lines, this step might work. For example, the difference between R71 151.58 and R68 268.38 is R2 883.20. Look for the value in the YTD+ field on the employee screen. Hopefully this is only one line that is affected and will be easy to spot. If this difference is split over more than one line, it becomes more challenging.

• Verify payroll definitions

The following definition screen need to be checked to confirm if the taxability and the IRP5 code was setup correctly:
                 - ED screen
                 - DD screen
                 - XD screen
                - OD screen
Usually you will find a taxable code (e.g. 3801) which was set to never taxable.

• Changes affecting the payroll

- Changing line definitions will force a recalculation for PAYE, SDL and UIF and it will happen in the current period.
- Should the changes be in a Tax Year End copy system, ensure to apply this change on the Live system as well

• Multiple lumpsum values without directive numbers

- Ensure that there is a directive number on the IS screen for each line that has a value which is linked to a line requiring a directive (3608, 3901 and 3907 which are defined as "Never Taxable" earnings)
- If you have multiple lines with values, you will require multiple directives (up to 3 per tax record)
Invalid directive numbers
- If you paid out amounts on IRP5 codes which require directive numbers (3608, 3901 and 3907 which are defined as “Never Taxable" earnings), valid directive numbers are entered
- If you entered zeroes e.g. 0000000, the number is invalid, and must be corrected

NOTE: Due to the possible complexity of this error, our Support Team cannot assist to investigate these types of queries and can only guide you. Should you require assistance to resolve this query, you will need to book a Professional Services Consultant. Click here to book a consultation.